CLEVELAND — Six Cleveland area residents have pleaded guilty to a fraudulent COVID-19 unemployment claims scheme.
The 33-count indictment stated that the individuals from Northeast Ohio illegally obtained nearly $3 million in Federal Pandemic Unemployment Assistance (PUA) benefits while using other people's personal identifying information.
“The pandemic created unprecedented financial challenges for millions of Americans who were unable to work because their employers were forced to cut back business operations or close entirely. PUA was intended to assist those individuals—workers in dire need of financial support while unemployed—yet these defendants stole millions of dollars from that program,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “These guilty pleas demonstrate our office’s commitment to prosecute and hold criminally responsible those who try to scam federal relief programs, waste our tax dollars, and steal the identities of others. We thank our law enforcement partners for helping us hold these defendants responsible for their crimes.”
According to court documents, the following defendants submitted fraudulent applications for PUA benefits to the California Employment Development Department (EDD) and other state workforce agencies around the country between March 2020-Aug. 2021.
- 30-year-old Clarissa Cheney of Cleveland Heights
- 38-year-old Kevin Gilmore of Beachwood
- 37-year-old Tiara Henderson of Lakewood
- 29-year-old Ladessa Battle of South Euclid
- 39-year-old Lynard Mitchell of South Suclid
- 29-year-old Marcelys Jones of Cleveland Heights
Officials say that the benefits were preloaded onto bank-issued debit cards and sent through the U.S. mail. After receiving the debit cards, some of the defendants used them to make cash withdrawals at various ATMs in Northeast Ohio.
The PUA, which was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, provided temporary benefits to workers who lost their jobs due to COVID-19-related reasons.
“The deliberate and conniving actions to cheat a program designed to assist people who were affected by the COVID-19 pandemic is inexcusable,” said FBI Special Agent in Charge Greg Nelsen. “Their actions, including exploiting the identities of a multitude of individuals, will have a profound and long-lasting impact. The FBI and our partners will continue to identify and investigate those who commit pandemic-related fraud and seek justice for the victims."
The defendants will be sentenced in September and October. They face a maximum penalty of 20 years in prison.
“The defendants engaged in an unemployment insurance (UI) fraud scheme that targeted multiple state workforce agencies. These individuals conspired to file fraudulent UI claims in the names of other individuals, diverting vital taxpayer resources away from unemployed American workers in dire need of UI benefits. These guilty pleas affirm the U.S. Department of Labor, Office of Inspector General’s commitment to protecting the integrity of the UI program. We are grateful for our many law enforcement partners, including the U.S. Attorney’s Office,” said Dana Johnson, Acting Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
